tag:blogger.com,1999:blog-5713178645208582139.post8473375781321496858..comments2024-03-22T02:37:15.030-05:00Comments on Macro Musings Blog: Three Questions Janet Yellen Should Have Asked the SenatorsDavid Beckworthhttp://www.blogger.com/profile/04577612979801459194noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5713178645208582139.post-42173400935519362942013-11-25T15:09:47.174-06:002013-11-25T15:09:47.174-06:00David,
Recall back in April and May you did a coup...David,<br />Recall back in April and May you did a couple of posts on the University of Michigan/Thompson Reuters Survey of Consumers where households are asked how much their dollar (i.e. nominal) family incomes are expected to change over the next 12 months. Well, I've been doing a lot of Granger causality tests on my own and in response to discussions in the econblogosphere and one topic Mark A. Sadowskihttps://www.blogger.com/profile/08259309059705236763noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-25128363691008868372013-11-21T09:20:49.320-06:002013-11-21T09:20:49.320-06:00Jared, in the current context the medium of accoun...Jared, in the current context the medium of account and unit of account are the same thing. (they can be different though, like in the case of a commodity standard where medium of account would be gold, but the unit of account would certain ounces of gold). Anyway, the key issue here is that in the short-run what matters is the medium of exchange so treasuries can play a role. In the long-run, itDavid Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-1627004193691683872013-11-20T16:29:25.784-06:002013-11-20T16:29:25.784-06:00Can you explain the concept of a medium of account...Can you explain the concept of a medium of account and why it’s important? I understand a medium of exchange and a unit of account, but not a medium of account.<br /><br />By advocating for higher fiscal deficits, I’m not arguing that Treasury securities should fill the demand for safe assets all by themselves. I’m claiming that a major increase in the volume of T-securities would help repair Jarednoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-61032114843563334372013-11-19T16:19:14.916-06:002013-11-19T16:19:14.916-06:00Jared,
First, I do view treasuries as a type of m...Jared,<br /><br />First, I do view treasuries as a type of money assets. See <a href="http://macromarketmusings.blogspot.com/2011/12/why-global-shortage-of-safe-assets.html" rel="nofollow">here</a>. While they are definitely a medium of exchange, especially for institutional investors, they are not a medium of account. That is the key difference between them and the monetary base.<br /><br />David Beckworthhttps://www.blogger.com/profile/04577612979801459194noreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-83244222557615254622013-11-19T15:02:18.022-06:002013-11-19T15:02:18.022-06:00"The absence of robust broad money supply gro..."The absence of robust broad money supply growth means the economy is still starved of the monetary assets needed to restore full employment."<br /><br />If it’s more monetary assets the economy needs, wouldn’t larger fiscal deficits be a more reliable method of creating inside money than signaling the future path of monetary policy? Fiscal deficits directly inject Treasury securities Jarednoreply@blogger.comtag:blogger.com,1999:blog-5713178645208582139.post-91862770124556492852013-11-15T06:01:18.760-06:002013-11-15T06:01:18.760-06:00Well, first to ask aggressive questions, Yellen wo...Well, first to ask aggressive questions, Yellen would have to depart somewhat from extant and sturdy Fed culture and norms. We are talking about an august independent public agency. <br /><br />Might she say,'"Volcker was lionized for getting inflation down to 5 percent, and then told to cool it. We are can take lot more heat right now, maybe run it up to 5 percent." <br /><br />Benjamin Colehttps://www.blogger.com/profile/14001038338873263877noreply@blogger.com